HCLTech will acquire HPE's telecom solutions division

HCLTech, India’s third-largest IT services company, has announced that it will buy the telecom solutions business of US-based Hewlett Packard Enterprise (HPE) for up to $160 million (around ₹1,440 crore) in cash.

The deal is structured as an asset purchase, which also includes $15 million in performance-based incentives linked to results in FY 2024–25. The transaction is expected to be completed within six months, subject to regulatory approvals in multiple countries, including the US.

As part of the agreement, about 1,500 telecom and engineering experts from HPE will join HCLTech’s global delivery teams. This will help HCLTech strengthen its telecom capabilities and expand its portfolio.

This acquisition follows HCLTech’s earlier $225 million purchase from HPE’s communication technology group in December 2024. It is also HCLTech’s second acquisition in 2025, after taking over Nuance’s Enterprise Professional Services business as part of a partnership with Microsoft in January.

Indian IT companies have stepped up acquisitions this year after a slowdown, mainly to boost capabilities in AI, software products, and engineering services.

HCLTech said the acquisition will help it move toward higher-value, IP-led services and support long-term growth. HPE also said the deal will benefit communication service providers (CSPs) by strengthening support for the telecom industry.